If you had not viewed the previous post I do suggest that do so you can better understand what this post has in store for you. In a world of 40 hours (or more) of work a week, ensuring that our children get an “A” in school and things that help with “normal life” we fail to take the time to ask the “why” of anything. Here is a question to ask yourself. Is my car really an asset as the banks and “conventional wisdom” says it is? Take a look at the picture below:
Light Blue – Expense over time (comes out of your salary every month until it’s paid for)
Purple – Prices are varied (could be more or less depending on your links and genetics)
NOTE: These are conservative figures.
But…but…how can you say that? When you have to work from 8 – 4 (whatever shift the system gives you) and your car is in the parking lot, does it make any money for you? Driving fast is known to burn a lot of fuel, add bad roads to the mix and you have more part replacements to consider. Car care products abound and they are not cheap when you watch the total amount of money you spend on these products. While we all should have fun and entertainment going “here, there and everywhere” every week or another week with your car is costly. After 50,000 miles or 3 years, it seems expense performs intense workouts in the gym while taking steroids as the engine and other internal parts start calling for maintenance.
Depending on the way you make money/job and where you live, a car is a valuable asset as it can save time and some transportation cost. If you do fall into one of the many conventional wisdom categories such as the 8 am – 4 pm worker, can only drive fast, I “do not want my car dirty” or must hang out every other week human then I’m quite sure your car is an expense.
So, is it still an “asset” now?